Japan Press Weekly

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2009 February 4 - 10 [ECONOMY]

Toyota makes 12.8 trillion yen in surplus in Apr.-Dec. period

Toyota Motor Corporation had 12.8 trillion yen in earned surplus at the end of December 2008, an increase of 4.3 trillion yen over the last five years.

The automaker on February 6 published its group’s consolidated earnings report, which shows that its earned surplus for the April-December period in 2008 was 12.3 trillion yen. This earned surplus is added to the existing 500 billion yen in surplus capital.

On the same day, Toyota lowered its forecast to 350 billion yen net loss in its group’s consolidated earnings report for the current business year through March, predicting that it will suffer an operating loss of f 450 billion yen.

The reason Toyota gave for the lowered forecast is lowered sales abroad are and the rapid economic downturn in Japan due to the “deteriorating trends of the jobs market and incomes”.

However, the earned surplus which Toyota has amassed is enough to cancel its plan to cut 3,000 jobs for fixed-term contract workers at the end of March.

Fixed-term contract workers at Toyota earn 10,000 yen a day. Their annual income is about 3 million yen, including allowances for shift work (excluding overtime pay). By using 9 billion yen a year, just 0.07 percent of Toyota’s surplus funds, Toyota can secure the 3,000 temporary jobs it intends to eliminate.

If a financially strong company like Toyota sets the precedent in mass dismissals of contingent workers, it will accelerate the economic downturn nationwide.